Dáil debates

Wednesday, 11 October 2006

8:00 pm

Michael J Collins (Limerick West, Independent)

I thank the Leas-Cheann Comhairle for allowing me to raise this matter. This important issue relates to the constituency of Limerick West. Yesterday, we received news of yet another loss of jobs in County Limerick when Microtherm Limited in Bruff announced it was to close with immediate effect. Management informed the staff of 46 of this decision yesterday. The closure of the company will have major detrimental economic consequences for the wider community as an estimated wage bill of €1.5 million will vanish.

I thank the Minister for Enterprise, Trade and Employment, Deputy Martin, for his presence. As he will be aware, we had problems in Kantoher and a provisional liquidator was appointed to Castlemahon Poultry Products Limited two weeks ago.

Microtherm Limited, which has operated in Bruff since 1976, is by far the single largest employer in the town. Its dedicated workforce has competed in the highly competitive electronic component manufacturing industry for more than 30 years. Due to an increasing cost base, however, it now finds itself unable to match cheap foreign competitors. The workforce, which is predominately local to Bruff, comprises in many instances a husband and wife working together. We are just a few weeks from Christmas and many of those affected have young families and mortgages to pay. Replacement industries are needed in County Limerick.

Today, I accompanied a delegation from Castlemahon Poultry Products Limited to a meeting attended by the Minister, Deputy Martin, and his Ministers of State, Deputies Killeen and Brendan Smith. I thank them for agreeing to the meeting. As the Minister learned during his discussions with representatives of the workers at the plant and their trade union official, the company is experiencing serious problems. If the recommendation the provisional liquidator is obliged to submit to the court by 23 October is not good, it is clear what will happen.

Last week, a delegation of growers and suppliers of Castlemahon Poultry Products met the Minister for Agriculture and Food. It was anxious to determine if it could raise sufficient capital to try to continue operations at the company. The liquidator informed us that while two groups had shown an interest, no definite decisions had been made.

I thank the Minister for arranging a meeting between the group in question and Shannon Development. I understand €10,000 has been provided to the group to carry out a feasibility study.

Given the events which have unfolded in Microtherm Limited and Castlemahon Poultry Products Limited, I call on the Minister to further instruct the relevant State agencies to address the underlying concerns in the food processing and electronics manufacturing industries, namely, rising costs and cheap foreign imports.

For many years, Shannon Development has been to the fore in promoting industrial development and jobs in the mid-west region. As this function will soon transfer to the IDA and Enterprise Ireland, these organisations must step up to the mark and deliver much-needed replacement industries.

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